The entrepreneur is required to furnish information in the application form for availing assistance for agro industrial project, agri infrastructure project and center for excellence. He is required to prepare the detailed project report and get it appraised by the financial institution providing term loan for the proposed project. The interest subsidy shall be granted towards interest on term loan from nationalised banks and financial institutions recognised by Reserve Bank of India. In case the term loan is granted by a co-operative bank, the entrepreneur is required to get the project appraised by GITCO or such organisation nominated by GAIC. The cost of the appraisal shall be borne by the entrepreneur.

The entrepreneur shall get back ended interest subsidy after the project has commenced the commercial production. The certificate from the bank/ financial institution is required to be submitted before disbursement of subsidy can take place. The interest subsidy payable to the entrepreneur will be sent directly to the bank / financial institution.

The entrepreneur is required to obtain ABRN with GAIC for availing assistance under different schemes of the policy. GAIC has prepared ABRN form to get general project information from the entrepreneur. Having registered, the details can be used by GAIC whenever application is received for various kinds of assistance available under the policy. Thus, ABRN will save inconvenience of furnishing details repeatedly and avoid duplication work. ABRN shall also help to have continuous interaction with the entrepreneur.

THE government may provide an interest subsidy to small and medium-size (SME) pharma companies to upgrade their facilities in order to meet stringent quality protocols. This particular proposal in the draft pharma policy is getting support from different wings of the government. The Prime Minister’s Office is keen to take forward the proposal for extending 5% interest subsidy to SMEs facing a fund crunch in order to meet the health ministry’s revised good manufacturing practices (GMP). A group of ministers (GoM) reviewing the new pharmaceutical policy is likely to take a decision on the issue soon, an official source said. The Planning Commission has already accorded an in-principle approval to provide Rs 560 crore for the scheme in the Eleventh Plan. The proposal is likely to get a goahead even as finance ministry cautioned the government on the budgetary implications of providing numerous fiscal incentives proposed in the draft policy. Once implemented, the interest subsidy scheme is likely to benefit close to 2,000 SMEs drug makers. The scheme would also come to the rescue of drug makers in Gujarat and Madhya Pradesh, several of whom have closed down due to lack of capital while others are struggling to find resources to meet the new GMP requirements. Several companies have also defaulted on loan repayments due to paucity of funds. The new GMP norms notified by the Union health ministry became mandatory with effect from July 1, 2005. The new requirements are comparable with WHO GMP norms. While the new norms have helped in standardising drugs produced by the SME manufacturers to those available elsewhere in the world, the exercise has substantially increased the upgradation cost for manufacturers. It is felt by government officials that low-cost advantage of SME drug makers should be protected in the larger national interest by providing suitable fiscal incentive in the form of an interest subsidy. As per a report of the Development Commissioner (SSI), contribution of SSIs in Indian Pharma market is 50% by volume and 30% by value.

Section 8 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides for filing of memorandum by a Micro, Small or Medium Enterprise. Sub-section (2) of section 8 stipulates that the form of the Memorandum, the procedure of its filing and other matters incidental thereto shall be such as notified by the Central Government.

Section 8 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides for filing of memorandum by a Micro, Small or Medium Enterprise. Sub-section (2) of section 8 stipulates that the form of the Memorandum, the procedure of its filing and other matters incidental thereto shall be such as notified by the Central Government.

The memorandum may be filed by all three categories of enterprises with the District Industries Centre in the jurisdiction of which the enterprise is (or, is proposed to be) located,

The memorandum may be filed by all three categories of enterprises with the District Industries Centre in the jurisdiction of which the enterprise is (or, is proposed to be) located,

The procedure for filing it has been outlined in Schedule. II of the Notification for the format of EM

Procedure for Filing MemorandaFeatures of the present procedures are as follows:

Form of the Entrepreneurs Memorandum can be downloaded from the Internet, the address of which can be obtained from Directorate dealing with Micro, Small & Medium Enterprises of the State Governments/ UTs. or the hard copies of the same can be obtained from the District Industries Centres. This form can also be downloaded from the SIDO website i.e. http://www.laghu-udyog.com or http://www.smallindustryindia.com

Any person who intends to establish a micro or small enterprise, at his discretion; or a medium enterprise engaged in providing or rendering of services may, at his discretion or a medium enterprise engaged in the manufacture or production of goods shall file the Memorandum of Micro, Small or as the case may be, of Medium Enterprise with District Industries Centre of its area.

The District Industries Centre shall fill all the codes in the form of the Memorandum and issue an acknowledgement after allotting an EM number, date of issue and category of the unit within five days of the receipt of the form of Memorandum by post or same day, if the form of Memorandum is submitted in person as well as online.

Before issuing the acknowledgement, the District Industries Centers shall make sure that the form is complete in all respect and particularly the form is signed and is accompanied with an undertaking, which is a part of the form of Entrepreneurs Memorandum.

The District Industries Centre shall maintain record of all the Entrepreneurs Memorandum so filed in respect of micro and small enterprises and medium enterprises engaged in providing and rendering services. District Industries Centers shall forward a copy of the Entrepreneurs Memorandum so filed with EM number allotted to the Small Industries Service Institutes of their State/Jurisdiction.

The District Industries Centre shall maintain record of all the Entrepreneurs Memorandum so filed in respect of medium enterprises engaged in production/manufacturing of products and forward one copy each of the Entrepreneurs Memorandum with EM number allotted to Small Industries Service Institutes of their State/Jurisdiction and to Joint Development Commissioner (MSME Pol.) in the Office of the Development Commissioner (Small Scale Industries).

The form of Memorandum is in two parts. Any person who intends to establish a micro, small or medium enterprise engaged in providing or rendering of services may file or those who want to establish medium enterprise engaged in the production or manufacture of products shall file Part 1 of the Entrepreneurs Memorandum to District Industries Centre.

Once the above enterprises start production or start providing or rendering services, they should file Part II of the Entrepreneurs Memorandum to District Industries Centre.

In case of non-filing of Part II of the Entrepreneurs Memorandum within two years of the filing of Part I, the Memorandum (Part I) filed by the entrepreneur will become invalid.

In case of change in the investment in plant and machinery or in equipment, the enterprises who have already filed Entrepreneurs Memorandum should inform the District Industries Centre of the same in writing within one month of the change in investment.

In case of change of products and that of services or addition in products or services, the enterprises who have already filed Entrepreneurs Memorandum should inform the District Industries Centre of the same in writing within one month of the change.

The District Industries Centre shall, in addition of keeping a record, in writing, shall also maintain records electronically on computer.

The following form basis of evaluation:

The unit has obtained all necessary clearances whether statutory or administrative. e.g. drug license under drug control order, NOC from Pollution Control Board, if required etc.

Unit does not violate any locational restrictions in force, at the time of evaluation.

Value of plant and machinery is within prescribed limits.

Unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.